Law 160/2023 - Amendments to Egypt's Investment Law

Law 160/2023 - Amendments to Egypt's Investment Law

The Egyptian Government has consistently showcased its unwavering dedication to enhancing and revitalizing the investment landscape within Egypt. This commitment has been particularly evident since the enactment of the Egyptian Investment Law, designated as Law no. 72 of 2017. A notable continuation of this commitment occurred on July 25, 2023, when the Egyptian Parliament issued and endorsed Law no. 160 of 2023. This legislative action sought to amend specific provisions within Law no. 72 of 2017 with the overarching objective of invigorating investment within the Egyptian market.

Law 160/2023 primarily focuses on the revision of "Private incentives" as stipulated in articles 1, 9, 11(1), 12(2), 13, 14(1), 17, 20, 34, and 40(2) & (3) of Law no. 72/2017. The key highlights of these modifications are succinctly summarized as follows:

  •  All investment projects falling under the purview of this Law, regardless of whether established before or after the implementation of its provisions, are eligible to benefit from Private incentives.
  • A significant alteration entails a 50% deduction from the investment costs within Sector (A), encompassing a diverse range of data and statistics sourced from the Central Agency for Public Mobilization and Statistics, duly endorsed by the General Plan for Economic and Social Development.
  • The timeline for company establishment has been extended, allowing for a maximum period of nine years, a notable increase from the previous three years. This extension is contingent upon a decision by the Council of Ministers, upon the recommendation of the relevant minister, from the date of execution of the executive regulation of this law.
  • Projects outlined in articles 11 and 11 bis possess the potential to receive exemptions of up to 50% of infrastructure, services, and utilities establishment costs. The Public Treasury may cover up to 50% of the project's fundamental facilities consumption for a maximum duration of ten years. If warranted, concerned ministers can propose additional non-tax incentives.
  • The investment map has been comprehensively updated with essential data and information to facilitate the assessment of quality and the investment framework. This includes insights into property nature, pricing, target market dimensions, safeguards, and related aspects.
  • Rigorous prerequisites and controls have been defined for companies engaged in strategic or national projects, fostering private-public collaborations aimed at development. Violations of these requisites entail appropriate penalties in accordance with the nature of the breach.
  • The Supreme Council for Licensing Energy has extended authorization for the establishment of industries such as fertilizers, iron and steel, and energy-intensive sectors within the free zone projects framework. Notable exceptions encompass liquor and alcohol industries, explosives, and other sectors linked to national security.
  • Pertinent amendments to Law no. 202 of 2020 have been instituted, primarily to prohibit the importation of hazardous waste from foreign sources stemming from projects within Free Zones into the country.
  • Apart from the previously conferred incentives, advantages, and exemptions, investment projects engaged in industrial activities are entitled to a financial investment ranging from 35% to 55% of the value of tax payments derived from the direct income tax return. The Ministry of Finance is mandated to disburse this incentive within forty-five days following the tax return deadline, with the incentive itself exempt from taxation.

In summary, the Egyptian Government's consistent commitment to refining the investment ecosystem is highlighted through the enactment of Law no. 160 of 2023, which meticulously revises and enhances pertinent provisions to stimulate investment activities within Egypt's economic sphere. Please feel free to contact us at mail@eldib.com with any related queries.

To view or add a comment, sign in

Insights from the community

Others also viewed

Explore topics